By RICK MILLER
Olean Star
Olean Mayor Amy B. Sherburne wasn’t surprised at the negative reaction of her proposed $23.2 million budget for 2026-2027 that was released on Thursday.
“I’m upset too,” the mayor told the Olean Star in an interview in her office Friday afternoon. The proposed budget carries an increase of 18.6% or $3.31 per $1,000.
Sherburne and city taxpayers appear to have dodged a significant amount of that nearly 20% increase in the tax levy with the announcement by Gov. Kathy Hochul of a big increase in the Aid and Incentives to Municipalities program.
The mayor said the governor proposed a $780,000 increase to the city’s current AIM funding of $260,000.
“That will help us tremendously,” Sherburne said. It will substantially reduce the tax levy” or amount to be raised by property taxes.
Sherburne said the city just received the letter so it is not included as revenue in the proposed budget. She said she hadn’t calculated the amount the $780,000 could reduce the tax rate, which under the proposed budget.
The 2026-2027 proposed tax levy of $23.2 million is a $3.4 million jump from the $19.7 million levy in the current budget. It appears the $780,000 boost in state AIM aid could trim the levy by almost one-third.
The proposed tax rate is $21.06 per $1,000 assessed value, up $3.31. With the added AIM aid, the proposed tax rate could go down by almost $1.
Sherburne said the budget process used for years where nothing changed “is not working. The fund balance is too low. The Water (Department) balance is too low. Keeping taxes low year after year is bound to catch up to you.”
Part of the mayor’s objective in presenting what is a status quo budget is to shed light on the budget and how it’s funded. She said the budget freeze last year was an indication “that something’s not right with the budget.”
Sherburne said, “I chose a different path. We have to be more responsible with what we spend. You have to be more truthful to be able to fix this.”
There will be eight public meetings with department heads on Thursday nights, Sherburne said. The city is using a new budgetary software system this budget cycle.
The mayor said she is ready to work with the council to pass a budget by April 15. While this is the first first budget she’s prepared as mayor, she’s aware that a budget with a tax increase of 18.69% is not going to be approved by the council.
A line-by-line review of the proposed budget will start on Thursday with the Public Works Department, Sherburne said.
“The council will have the information they need to come up with a conclusion,” the mayor said.
Sherburne is also asking that tax exempt not-for-profit property owners, including churches in the city, pay a voluntary amount “to help lessen the burden on the rest of city taxpayers.” It’s unclear how much the mayor hopes to raise from the voluntary contribution.
Sherburne said she’s looking at a three-year approach to the budget. “We have to be prepared and show we are making strides to catch up.”
The bottom line is that the actual tax rate will be lower than the one listed in the proposed budget, Sherburne said. She’s counting on the aldermen to help whittle down the budget and the tax rate.
